19th Apr 2023 09:23
(Alliance News) - Hunting PLC on Wednesday celebrated a strong start to the year, as it posted earnings above expectations for the first quarter of 2023.
For the three months to March 31, the London-based international energy services group reported earnings before interest, tax, depreciation and amortisation of USD22.6 million, up sharply from USD6.7 million a year prior.
The company said its Ebitda margin also strengthened. Hunting attributed this to higher facility utilisation and some improvements to pricing, and said it was in line with market guidance of around 10% for the year as a whole.
The sales book came in at around USD500.0 million, backed up by a strong performance in the US on the completion of domestic and international orders. Hunting said that key orders continue to be completed, and added that it expects "strong cash generation" to follow in the second half of the year.
Full-year guidance remained unchanged, however, with the firm still targeting Ebitda of around USD88 million.
"Hunting has begun 2023 strongly with an Ebitda ahead of management's expectations. March 2023 was a particularly strong month as international orders were completed within the US Manufacturing business unit. Activity across the global energy industry is robust with opportunities in oil and gas, carbon capture and geothermal developments accelerating as post-Covid growth, energy security requirements and energy transition legislation is announced," said Chief Executive Jim Johnson.
"At this point in the year, the board is comfortable with market expectations, and reiterates its expectations for continued growth in year-on-year revenue and Ebitda."
Hunting shares were trading 3.7% higher at 251.00 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News reporter
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